Articles Tagged withWestpark Capital

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker Michael Polyakov (Polyakov) has been subject to three customer complaints and eight financial disclosures. Polyakov is currently employed by Westpark Capital, Inc. (Westpark Capital). Many of the customer complaints against Polyakov concern allegations of high frequency trading activity also referred to as churning, unauthorized trading, and unsuitable investments.

In January 2013 a customer filed a complaint alleging unsuitable investments, churning, and excessive trading. The claim alleged $157,178 in damages and settled.

In March 2010 a customer filed a complaint alleging churning, unauthorized trades, and unsuitable investments claiming $250,000 in damages. The complaint was settled.

In addition, Polyakov has eight financial disclosures concerning debt compromises. This information has been found to be material for investors to have because an advisor who cannot manage his own finances is a relevant factor for investors to consider. In addition, a broker in financial distress may be influenced to recommend high commission products or strategies.

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former Westpark Capital, Inc. (Westpark Capital) broker Lawrence Fawcett (Fawcett) has been subject to five customer complaints, two regulatory actions and one termination for cause. Fawcett was barred by FINRA from the securities industry in March 2018 after failing to appear for testimony in connection with an investigation regarding Fawcett’s outside business activities. At around the same time Fawcett was terminated by Westpark Capital on allegations that he conducted business from a non-disclosed location and made false representations to the firm.

In December 2017 Fawcett was sanctioned by FINRA on allegations that he recommended unsuitable mutual fund transactions to a customer by recommending 12 different mutual fund families instead of obtaining favorable breakpoint discounts for the customer.

In addition, many of the customer complaints against Fawcett concern high frequency trading activity also referred to as churning or excessive trading. In May 2018 a customer filed a complaint alleging excessive trading, churning, and unsuitable transactions seeking $33,271 in damages. The claim is currently pending.

The security fraud attorneys at Gana Weinstein LLP are currently investigating Westpark Capital, Inc. (Westpark Capital) broker Patrick Maddren (Maddren). According to BrokerCheck records, Maddren has been subject to two customer disputes involving various forms of security fraud.

In March 2016, a customer alleged that Maddren engaged in a wide range of security fraud, including false representations, excessive trading, unauthorized trading, unsuitable recommendations, and breach of contract. The dispute was settled for $295,000.

In May 2012, a customer alleged that in February 2012, Maddren executed unauthorized trades in the account. The customer requested $62,530 in damages.

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker Patrick Maddren (Maddren) has been subject to two customer complaints and two tax liens. Maddren is currently registered with WestPark Capital, Inc. (WestPark Capital). In March 2016 a customer filed a complaint alleging a number of securities law violations including that the broker engaged in churning (excessive trading), material misrepresentations and omissions, unauthorized trading, unsuitable recommendations, and breach of contract among other claims. The claim alleged $1,000,000 in damages and is now settled.

In 2012 several tax liens were filed against Maddren in amounts totaling over $300,000. Large tax liens on a broker’s CRD can be a red flag that the broker may be influenced to engage in high commission activity in order to satisfy personal debts. In addition, a broker’s inability to manage their own finances is relevant in a customer’s decision to use their services.

When brokers engage in excessive trading, sometimes referred to as churning, the broker will typical trade in and out of securities, sometimes even the same stock, many times over a short period of time. Often times the account will completely “turnover” every month with different securities. This type of investment trading activity in the client’s account serves no reasonable purpose for the investor and is engaged in only to profit the broker through the generation of commissions created by the trades. Churning is considered a species of securities fraud. The elements of the claim are excessive transactions of securities, broker control over the account, and intent to defraud the investor by obtaining unlawful commissions. A similar claim, excessive trading, under FINRA’s suitability rule involves just the first two elements. Certain commonly used measures and ratios used to determine churning help evaluate a churning claim. These ratios look at how frequently the account is turned over plus whether or not the expenses incurred in the account made it unreasonable that the investor could reasonably profit from the activity.

According to BrokerCheck records financial advisor Victor Sibilla (Sibilla), currently associated with Westpark Capital, Inc. (Westpark Capital), has been subject to 6 customer complaints, one regulatory action, and two civil judgments. According to records kept by The Financial Industry Regulatory Authority (FINRA) Sibilla has been accused by customers of unsuitable investments, misrepresentations, excessive trading, and misuse of margin among other claims.

In May 2017, a customer filed a complaint alleging that Sibilla was not licensed in the state where he transacted business seeking $108,400 in damages. The claim is currently pending. In June 2013 another customer filed a complaint alleging that Sibilla misrepresented that his stock would double claiming $175,000 in damages. The claim was closed. In September 2012, a customer alleged excessive trading and unsuitable investments causing $300,000 in damages. The claim was settled.

Brokers have a responsibility treat investors fairly which includes obligations such as making only suitable investments for the client. In order to make a suitable recommendation the broker must meet certain requirements. First, there must be reasonable basis for the recommendation the product or security based upon the broker’s investigation and due diligence into the investment’s properties including its benefits, risks, tax consequences, and other relevant factors. Second, the broker then must match the investment as being appropriate for the customer’s specific investment needs and objectives such as the client’s retirement status, long or short term goals, age, disability, income needs, or any other relevant factor.

The securities fraud lawyers of Gana Weinstein LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority’s (FINRA) against broker Thomas Sullivan (Sullivan). According to BrokerCheck records Sullivan has been the subject of at least six customer complaints and two terminations for cause. The customer complaints against Sullivan allege a number of securities law violations including that the broker made unsuitable investments and churning (excessive trading) among other claims.

In May 2010 Sullivan was discharged by Hallmark Investments on allegation that Sullivan stole revenue from the brokerage firm. The most recent customer complaint was filed in November 2016 alleging $23,616 in damages stemming from excessive trading and churning. The claim was settled

When brokers engage in excessive trading, sometimes referred to as churning, the broker will typical trade in and out of securities, sometimes even the same stock, many times over a short period of time. Often times the account will completely “turnover” every month with different securities. This type of investment trading activity in the client’s account serves no reasonable purpose for the investor and is engaged in only to profit the broker through the generation of commissions created by the trades. Churning is considered a species of securities fraud. The elements of the claim are excessive transactions of securities, broker control over the account, and intent to defraud the investor by obtaining unlawful commissions. A similar claim, excessive trading, under FINRA’s suitability rule involves just the first two elements. Certain commonly used measures and ratios used to determine churning help evaluate a churning claim. These ratios look at how frequently the account is turned over plus whether or not the expenses incurred in the account made it unreasonable that the investor could reasonably profit from the activity.

The securities lawyers of Gana Weinstein LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against broker Matthew Turner (Turner). According to BrokerCheck records Turner has been subject to at least five customer complaints and one pending bankruptcy. The customer complaints against Turner allege securities law violations that including unsuitable investments, unauthorized trading, unsuitable use of margin, and churning among other claims.

In July 2014 a customer filed a complaint alleging $40,000 in damage stemming from unsuitable investment recommendations from 2010 through 2012. The complaint settled. In November 2012, another customer filed a complaint alleging unsuitable investments causing $450,000. The claim settled. In addition, in April 2015, Turner filed for bankruptcy. Such disclosures on a broker’s record can reveal a financial incentive for the broker to recommend high commission products or services. A broker’s inability to handle their personal finances has also been found to be relevant in helping investors determine if they should allow the broker to handle their finances.

Brokers have a responsibility treat investors fairly which includes obligations such as making only suitable investments for the client. In order to make a suitable recommendation the broker must meet certain requirements. First, there must be reasonable basis for the recommendation the product or security based upon the broker’s investigation and due diligence into the investment’s properties including its benefits, risks, tax consequences, and other relevant factors. Second, the broker then must match the investment as being appropriate for the customer’s specific investment needs and objectives such as the client’s retirement status, long or short term goals, age, disability, income needs, or any other relevant factor.

According to the BrokerCheck records kept by Financial Industry Regulatory Authority (FINRA) broker Michael Bell (Bell) has been the subject of at least 8 customer complaints, two financial disclosures, two firm terminations, and two regulatory actions. Customers have filed complaints against Bell alleging a litany of securities law violations including that the broker made unsuitable investments, unauthorized trades, breach of fiduciary duty, misrepresentations and false statements, churning, and fraud, among other claims. Some of these claims involve recommendations in penny stocks, private placements, and other speculative securities.